The share of fresh businesses entering the formal credit system fell to 42 per cent in FY26 from 52 per cent in FY23, even as outstanding commercial credit grew 14 per cent, according to Shirish Chandra Murmu, deputy governor of the Reserve Bank of India. Speaking at the CNBC-TV18 Banking Transformation Summit in Mumbai, Murmu highlighted that banks' stronger data and analytical capabilities were not translating into greater reach among borrowers they had not previously served. Outstanding commercial credit stood at ₹65.8 trillion in 2025-26, as reported by Business Standard.
"This did not happen for want of information: lenders today have access to richer data, and to materially stronger analytical capability, than at any point before," Murmu stated. He explained that the decline points to something more structural — that data and technology may be getting better at serving those the system already understands, faster than developing capacity to understand new customers. The RBI official emphasized that this gap exists despite banks having access to alternative data sources including cash flows, GST filings, utility payments, e-commerce records, mobile usage, agricultural and geospatial data. As per The Hindu BusinessLine, Murmu urged banks to use AI not just to improve efficiency but to expand financial inclusion and strengthen customer trust, emphasizing that AI offers a major opportunity to identify deserving borrowers who remain outside the formal credit system.
"Resilience should be built into banks' design for growth — not bolted on after the expansion has already happened," Murmu emphasized at the CNBC-TV18 Banking Transformation Summit. He stressed that as banks grow their reach, transaction volumes and delivery arrangements, their capacity must keep pace with expansion. "Systems that perform well at today's volumes may behave quite differently at tomorrow's scale, and that calls for timely upgrades: in technology, in processes, in oversight — all of which innovation can help deliver," Murmu stated. The Deputy Governor emphasized that banks should focus on functions critical to their resilience and those that matter most directly to customers, requiring people capable of understanding new systems, challenging models, and overseeing external providers.
Murmu outlined a comprehensive intelligence framework for the financial system, comprising four levels that are symbiotic in nature. First, analytical intelligence of data, models and technology where AI certainly belongs, second, human intelligence of experience, knowledge and judgement, third, governance intelligence of boards and senior management oversight, and fourth, collective intelligence that emerges when information is pooled across banks. "Like growth, 'intelligence' has wider connotation than artificial intelligence alone," he explained. As machines take over more routine tasks, what becomes indispensable is human judgement — validating models, assessing outcomes, and stopping systems when they begin to go rogue. This shift requires institutions to reskill and grow their capability to meet changing needs at scale.
Banks must measure financial inclusion not only by the number of accounts opened, but by how effectively they are used and whether customers have the information and confidence to make informed financial decisions, Murmu emphasized. Speaking at a media company event, he noted that though there has been real progress with the financial inclusion index rising to 70 in March 2026 from 67 a year earlier, the real economic value comes only when consumers can understand financial choices, manage their finances and know their rights and responsibilities. The next phase of financial inclusion must deepen digital inclusion while ensuring those who need assistance are not left behind. "AI has a meaningful role to play here — helping the system recognise capability wherever it is expressed differently, across language, location, livelihood, gender and channel, and using that data prudently to make financial services more accessible," he said.
